Beruflich Dokumente
Kultur Dokumente
UNIVERSITY OF GLOUCESTERSHIRE
Global Organisational
Environment
Portfolio: Sony Ericsson
Abdul Latif Sultan : s1010402
Table of Contents
Introduction…………………………………………………………...…………………………………………………………... 3
Stakeholder Analysis………………………………………………………………………………………………… 5
Introduction to Sony Ericsson around the world and in most of the major
markets [1][2].
Sony Ericsson is a jointly owned venture of Sony Ericsson has been working at high costs
Japanese consumer electronics giant, Sony towards its vision, which in their official
Corporation and Swedish Telecom player documents is stated as “to be the
Telefonaktiebolaget LM Ericsson. Both of them Communication Entertainment brand, enabling
hold equal stake in Sony Ericsson (50:50). After people to create and participate in new
its incorporation in October, 2001 with its global experiences which blur the line between
head quarter in Hammersmith (London), the communication and entertainment” [2].
corporation’s presence can be felt almost all Omatseye in an article calls this joint venture- a
3 Global Organisational Environment
marriage rather than just a joint venture and The production facility at Beijing , Beijing SE
argues, that this as a significant step in the Potevio Mobile Communications Co., Ltd. is
telecom world [1] Sony Ericsson’s primary and only in-house
Another news article reports how Sony and manufacturing facility [2].
Ericsson have replaced older successful research
laboratories by researching on new technology
such as the Bluetooth technology, standard and
how this is an evolution in R&D [3]. Sony’s
References:
wide portfolio includes entertainment that
encompasses of music, movies, games etc. while 1. Omatseye, S. (2001). Sony Ericsson phone marriage
Ericsson is known for being highly competent in starts Oct. 1. RCR Wireless News, 20(18), 1. Retrieved
from Business Source Complete database.
telecommunication technologies. Ericsson
maintains a good relationship with a number of 2. (2001). Sony Ericsson Mobile Communications
telecom service providers [2][3]. Drawing on the established today. Cisionwire retrieved.
strengths of its parents Sony Ericsson is
involved in manufacturing mobile phones,
accessories and providing content and 3. (2003). Sony Ericsson Mobile Communications AB
application services in key areas of imaging, SWOT Analysis. Sony Ericsson Mobile
music, design and other multimedia features to Communications AB SWOT Analysis, 1-8. Retrieved
its users. Both companies ceased production of from Business Source Complete database.
individual handsets.
Western areas
Central & Eastern Europe, Middle East and
North Africa
Asia Pacific
China
Japan
Americas
Lund, Sweden
Beijing, china
Tokyo, Japan Figure 1.1
California, US
4 Global Organisational Environment
Stakeholder
5. Sony Ericsson.Analysis
(2010). Executive Biographies.
Retrieved November 22, 2010, from sonyericsson.com
9. Government
Level of Interest
Low High
Figure 2.1
Fig 2.1 [9] maps the various stakeholders of
Sony Ericsson according to Mendelow’s
Power/Interest Matrix. Local Communities
would be considered as an entity with low power
and low interest towards the Organisation
The Mendelow’s Power/Interest matrix indicates because of the minimal effort they make.
the type of relationship which organizations The government would be an entity which yields
typically might establish with stakeholder high power because of its ability to introduce or
groups in the different quadrants [8]. Based on change laws for instance but they have a
his matrix we can map stakeholders on different relatively low interest towards how the company
quadrants. fares & they have to be kept satisfied at always.
SonyEricsson’s customers, product suppliers,
References:
employees, competitors, partners are entities that
6. Mayers, J. (2005). Stakeholders power analysis. would look forward to be informed about the
Power-tools , 3-5. business and have relatively low power but have
a high interest in the organisation and its
7. Sony Corporation. (2005). Corporate Social
policies. The Board of Directors, Shareholders
Responsibility Report. Japan: Global reporting.
& the Parent companies (Sony & Ericsson)
Mendelow, A. (1991). Proceedings of the second would be considered as the key players of the
internaitonal conference on Information Systems. organisation as they yield high power to change
Cambridge: MA
8.
6 Global Organisational Environment
strategies and their level of interest in Sony ANALYSIS and PORTERS FIVE FORCES
Ericsson is high. MODEL.
References:
9.
Kingdom would affect Sony Ericsson have started to recruit older employees to tap
significantly. The Rate of borrowing in the UK into this growing labour pool. The ageing
where the co. is originally based in is very low is population also has impact on demand: for
significantly high in 2010 which would affect example, demand for sheltered accommodation
their plans for expansion. Inflation has been and medicines have increased whereas demand
provoking higher wage demands from for toys is falling. [13]”. Other components of
employees. The Economic conditions in the UK these factors include using Ethical business
and other western countries are not very good practices and employee welfare. Sony Ericsson
with huge economic trade deficits. Due to the has been having drives to work towards the
credit crunchy and the ongoing recession most benefits of the society and employee welfare.
countries have been facing, there have been Sony Ericsson protects the human rights of all
significant changes in exchange rates in 2010 its employees and complies with all the local
which affects imports and exports made by Sony and international regulation policies with respect
Ericsson worldwide. Sony Ericsson has had to to Human resources. Due to the changing social
formulate new strategies in 2010 with respect to scenarios and realizing that businesses play an
segmentation and to work out the new prices of important part in the global community, Sony
products being launched in different markets Ericsson has also been involved in other causes
because of the changes in these exchange rates. and fund raising programs [12].
Low growth in the National income of most of
the countries has been resulted in low demand of References:
the firm’s products. Because of these increasing
12. Sony Ericsson. (2009). Sustainability Report. United
costs and problems Sony Ericsson has had to Kingdom: Sony Ericsson.
reduce the size of its organisation in terms of its http://www.sonyericsson.com/cws/download/1/823/52
In 2010, the uncertain global economic climate 8/1280492941/SE_Sustainability_Report_2009.pdf
has had a negative effect on Sony Ericsson and 13. Gilespie, (2007) Foundations of Economics, Oxford
as a direct result of this it was necessary to Technological Factors:
University Press Website:
http://www.oup.com/uk/orc/bin/9780199296378/01stu
remould and reduce the size of the organisation
Withdent/additional/page_12.htm
new technology Sony can create or
around the world. Without these reductions it
innovate products for e.g. The Walkman series,
would have been impossible for Sony Ericsson
Cybershot high definition cameras embedded in
to remain competitive and to continue to operate
cellphones etc., this was all possible due to the
effectively [12].
technological advances. Technology helps Sony
Social Factors: Ericsson reduce costs, improve quality, and lead
to innovation and new developments. These
Changes in taste, trends of people affect the products benefit the company as well as its
organisation too. It also has an impact on the customers. Sony Ericsson works around
demand of the firm’s products. technology. In order to stay ahead of its
According to Gillespie “this also has an impact competitors they have to stay updated at all
on the availability and willingness of individuals times and regularly research and develop.
to work. In the UK, for example, the population
has been ageing. This has increased the costs for Environmental Factors:
firms who are committed to pension payments
Environmental factors involve contributing
for their employees because their staff are living
towards avoiding weather and climate change
longer. It also means some firms such as Asda
and being sustainable towards the environment.
8 Global Organisational Environment
With major climate changes occurring due to trade restrictions enforced on many countries for
global warming and with greater environmental e.g. import of Chinese products in some
awareness this external factor is becoming a countries e.g. Syria
significant issue for Sony Ericsson and other
firms to consider. The general move towards
more environmentally friendly products and
processes is affecting demand patterns and
creating business opportunities [14]. Due to the
recent environmental issues and new guidelines
towards sustainability, Sony Ericsson has had to
take initiatives towards being sustainable. For
E.g. it has reduced its carbon footprints
significantly by 2009 and aim to reduce it by 20 References:
percent by 2015, they strive to reduce emissions
14. Gilespie, (2007) Foundations of Economics, Oxford
in their product lifecycle, use more of renewable
University Press Website:
resources of energy, committing to recycling, http://www.oup.com/uk/orc/bin/9780199296378/01stu
reducing mobile charging and power dent/additional/page_12.htm
consumptions. All this was done because of the
changing environmental guidelines and more 15. Sony Ericsson. (2009). Sustainability Report. United
Kingdom: Sony Ericsson.
awareness because of environmental problems
http://www.sonyericsson.com/cws/download/1/823/52
[15]. 8/1280492941/SE_Sustainability_Report_2009.pdf
Legal Factors:
Porter’s five forces analysis:
It refers to the legal and regulatory environment
The Five Forces model of Porter is an outside-in
Sony Ericsson operates in locally or
business unit strategy tool that is used to make
internationally. In 2009 and 2010 there have
an analysis of the attractiveness (value...) of an
been there have been many significant legal
industry structure. The Competitive Forces
changes that have affected Sony Ericsson. The
analysis is made by the identification of 5
introduction of age discrimination and disability
fundamental competitive forces [16].
discrimination legislation, an increase in the
minimum wage and greater requirements for 1. Entry of Competitors: It is not very difficult
firms to recycle are examples of relatively recent for new entrants to enter the
laws that affect an organisation's actions [14]. telecommunication and multimedia market.
Legal changes can affect a firm's costs (e.g. if Although a few telecom regulations, high
new systems and procedures have to be investment might be a barrier for new
developed) and demand (e.g. if the law affects players, but it is not very difficult for new
the likelihood of customers buying the good or entrants to setup. For e.g. the launch of 3
using the service). Other factors that have new mobile phone companies in India
affected Sony Ericsson recently are changes in offering cheap mobile phones has had a
International policies and environmental acts, negative impact on Sony Ericsson and
9 Global Organisational Environment
SE in 2010
Opportunities Threat
7. Sony Corporation. (2005). Corporate Social Responsibility Report. Japan: Global reporting.
Mendelow, A. (1991). Proceedings of the second internaitonal conference on Information Systems. Cambridge: MA
8.
Mendelow, A. (1991). Proceedings of the second internaitonal conference on Information Systems. Cambridge: MA
10. Wood, R. (2000). Managing Complexity. The 14. Sony Ericsson. (2010, October 15). Q3 Financial
Economist books. Press Release. Retrieved November 20, 2010, from
Sony Ericsson Website:
11. (2009). The External Environment. Retrieved 1 http://www.sonyericsson.com/cws/corporate/press/
2010, from The Times 100 Website: pressreleases/pressreleasedetails/q32010semcfinanc
http://www.thetimes100.co.uk/theory/theory--the- ialspressrelease-20101015?cc=global&lc=en
external-environment--236.php
12. Gilespie, (2007) Foundations of Economics, Oxford 16. DATAMONITOR: Sony Ericsson Mobile
University Press Website: Communications AB. (2010). Sony Ericsson Mobile
http://www.oup.com/uk/orc/bin/9780199296378/01s Communications AB SWOT Analysis, 1-9. Retrieved
tudent/additional/page_12.htm from EBSCOhost.
14 Global Organisational Environment